Tis' the season of giving, and the very act may help solidify customer loyalty.
Companies that give back to society, i.e. market charitable donations or commit a percentage of profits on a particular product stand a better chance of securing loyal customers.
Why?
Businesses that demonstrate philanthropy are proving they care about societal well-being, which translates to them caring about their customers.
Tom's shoes: This is an ideal example of a company that is based on charity. For every pair of shoes sold, another is donated to an underprivileged, bare-soled child somewhere in the world. The consumer is not only obtaining a product they want, but they get to feel great and selfless about it, justifying the purchase. That justification helps facilitate positive word of mouth and repeat purchasing.
Other companies tie a few products with a cause and pledge all or a portion of their profits to that organization. Gap's Red line is a great example of branding charitable giving. It is a permanent clothing line of theirs, to help the AIDS crisis in Africa.
This helps the GAP appear more corporately responsible and socially progressive, two characteristics that attract customers and retain their business.
Bottom line- Whether an investment company announces a donation to a children's hospital in the annual holiday card, or an entire business stands upon a platform of donation, charity warms the consumer spirit and reigns those consumers in time and again.
Tags: Increasing Customers loyalty, increasing customer loyalties, customer loyalty practices, more customer loyalty, better customer loyalty.




